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The housing market is constantly changing, with rental markets largely driven by shifting demographics, inflation, the rise in the cost of living, and a scarcity of housing. While these trends didn’t necessarily spell bad news for single-family rentals, 2025 shows great promise as families and couples have deferred their homeownership dreams. Not to mention, young professionals have returned to urban areas, increasing the demand for single-family homes. At 3 Options Realty, we leverage extensive expertise and knowledge to help rental property owners make the most of their investment. Here are the seven must-know trends in single-family rentals to help you make informed decisions.
The most significant trend in the single-family rental market is the continued increase in demand. Research shows that the size of households across the country has grown, as multi-generational families and couples with children have become a large part of the rental demographic. Additionally, millennials are less likely to own homes than their elders. As families grow in 2025, it is advisable to consult a reputable property management company to ensure you find a property that is spacious and close to schools, hospitals, and other amenities.
Builders have applied for more single-family permits in 2025 than in previous years. This is according to a recent research by NerdWallet, which predicts an easing of the housing crunch due to more housing projects being completed by the end of the year. Although new homes slated for rentals lead to more competition and the price for new homes remains high, most people are looking for rental homes until the prices drop.
Property managers and landlords are integrating technology into rental property management, and the trend will only intensify in 2025. Reports show that 24% of rental owners look for professionals who use online tools to automate the rental processes. In addition, 90% of tenants want to complete all rental processes online. A tech-driven approach not only improves tenant experiences but also makes property management in Atlanta, GA more efficient.
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Read MoreWith mortgage rates expected to decrease significantly, more renters are likely to changeover to homeownership. In addition, the availability of single-family homes, the number of prospective tenants is expected to decrease slightly. Property managers leverage tenant screening software to tackle this problem, ensuring they find quality tenants for the properties they manage. Additionally, they are capping rent increases and offering better amenities to retain good tenants and reduce turnovers.
As a property management company or landlord, it is crucial to stay updated with new laws and regulations, especially in 2025. The last thing you want is a costly fine or legal action for non-compliance. Familiarizing yourself with the updated laws goes a long way to ensure you make the most of your investment and enhance renters’ experiences.
Since 2022, the shift from multifamily to single-family rental real estate investment trusts (REITs) has increased as Americans choose to delay homeownership. REITs are companies that solely run rental properties for investment purposes. Although they pool money from small investors to buy and run properties, individual investors can also get into real estate without a significant down payment. If the housing market continues on its current trajectory, single-family REITs will remain popular investment options.
Since the Biden administration, the Department of Housing and Urban Development has included several provisions to increase the availability of affordable housing, provide rent relief, and prevent evictions. The primary goal is to attract and keep tenants through the integration of technology and understanding tenant preferences. As a landlord or property management company, staying updated on upcoming trends is vital to running successful single-family rentals.
Contact us at 3 Options Realty and schedule a consultation with our experts to learn more about single-family rentals and how you can integrate proven strategies to grow your return on investment (ROI). If you are looking for a way to grow your venture in 2025, this guide can help kick-start your journey on the right foot.
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